I wanted to ask you about an opportunity I heard from a friend to purchase a Villa as a second home investment. It is located in Caldas da Rainha, Portugal. The price is ~150,000€, and the expected return, after Utilities and Taxes, should be around 800€ per month. My friend says that the rent is guaranteed for the first Three years from purchase.
I am very excited, since this deal represents ~8% annual net return rate, but I am also worried of the “PIGS†crisis and what will happen after three years. Do you think that Portugal is a good place for investing now, and is it going to get better soon? Are there better place to put my money in? (Spain, Greece, Germany – maybe?)
I'm a few months late to this idscussion. But, it is seems that the PIIGS debacle is heating up.
Here in the next month or two things should get quite interesting. If you are certain you want to make this move and the deal makes sense, I would wait to buy until the outlook in Portugal look the most bleak. Portugal isn't going anywhere long term, so I would buy and try to negotiate the price down when things look the worse.
Greece might not be a bad place either, plus it isn't like you'll really have to pay any taxes there. lol
I am from Portugal Lisbon. I came to the united states for the American dream. MY villa there was only 30k EU and I come from a poor shrimping family but the villa was on the beach it was great living there now the house is worth over a million and now I am a poor American. I think buying there is great no matter the circumstances it will go up faster in value than your 8%. I sure miss it.
Im a UK investor, few weeks back I was at an international trade fair. Portugal, Spain, Ireland and going through some bad times. The BUZZ place that everyone was talking about was Latvia. I think i have some docs.
The deal sounded bad in 2010. GUARANTEED 800 € p.m. in Caldas Rainha - typical developer scam in Portugal. Charge 50k above market for a otherwise unsaleable property and make a promise costing you less than 30k worst case.
Answering this question in 2020, from a Portuguese native perspective:
Definitely, depending on the markets, of course. Even with the so predicted COVID that is yet to hit us hard, I'm expecting annual returns of no lower than 8% on any of my investments that I've done for the past 3 years nor the ones I'm executing at the moment.